BEAR CALL SPREAD	RATIO CALL SPREAD
About Strategy	Bear Call Spread Option Strategy  Bear Call Spread option trading strategy is used by a trader who is bearish in nature and expects the underlying asset to dip in the near future. This strategy includes buying of an ‘Out of the Money’ Call Option and selling one ‘In the Money’ Call Option of the same underlying asset and the same expiration date. When you write a call, you receive premium thereby r Read more..	Ratio Call Spread Option Strategy  As the name suggests, a ratio of 2:1 is followed i.e. buy 1 ITM Call and simultaneously sell OTM Calls double the number of ITM Calls (In this case 2). This strategy is used by trader who is neutral on the market and bearish on the volatility in the near future. Here profits will be capped up to the premium amount and risk will be potentially unlimited since he is .. Read more..

BEAR CALL SPREAD Vs RATIO CALL SPREAD - Details

	BEAR CALL SPREAD	RATIO CALL SPREAD
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	3
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Strike Price of Short Call + Net Premium Received	Upper Breakeven Point = Strike Price of Short Calls + (Points of Maximum Profit / Number of Uncovered Calls), Lower Breakeven Point = Strike Price of Long Call +/- Net Premium Paid or Received

BEAR CALL SPREAD Vs RATIO CALL SPREAD - When & How to use ?

	BEAR CALL SPREAD	RATIO CALL SPREAD
Market View	Bearish	Neutral
When to use?	This strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.	This strategy is used by trader who is neutral on the market and bearish on the volatility in the near future. Here profits will be capped up to the premium amount and risk will be potentially unlimited since he is selling two calls.
Action	Buy OTM Call Option, Sell ITM Call Option	Buy 1 ITM Call, Sell 2 OTM Calls
Breakeven Point	Strike Price of Short Call + Net Premium Received	Upper Breakeven Point = Strike Price of Short Calls + (Points of Maximum Profit / Number of Uncovered Calls), Lower Breakeven Point = Strike Price of Long Call +/- Net Premium Paid or Received

BEAR CALL SPREAD Vs RATIO CALL SPREAD - Risk & Reward

	BEAR CALL SPREAD	RATIO CALL SPREAD
Maximum Profit Scenario	Max Profit = Net Premium Received - Commissions Paid	Strike Price of Short Call - Strike Price of Long Call + Net Premium Received - Commissions Paid
Maximum Loss Scenario	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received	Price of Underlying - Strike Price of Short Calls - Max Profit + Commissions Paid
Risk	Limited	Unlimited
Reward	Limited	Limited

BEAR CALL SPREAD Vs RATIO CALL SPREAD - Strategy Pros & Cons

	BEAR CALL SPREAD	RATIO CALL SPREAD
Similar Strategies	Bear Put Spread, Bull Call Spread	Variable Ratio Write
Disadvantage	• Limited amount of profit. • Margin requirement, more commission charges.	• Unlimited potential loss. • Complex strategy with limited profit.
Advantages	• This strategy takes advantage of time decay. • Investors can get profit in a flat market scenario. • Investors can earn options premium income with a lower degree of risk.	• Downside risk is almost zero. • Investors can book profit from share prices moving within given limits. • Trader can maximise profit when the share closes at the upper breakeven point.